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Entegris Reports Third-Quarter Sales Of $184 Million

Certain information contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current management expectations only as of the date of this press release, and involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Statements that include such words as "anticipate," "believe," "estimate," "expect," "forecast," "may," "will," "should" or the negative thereof and similar expressions as they relate to Entegris or our management are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These risks include, but are not limited to, fluctuations in the market price of Entegris' stock, Entegris' future operating results, other acquisition and investment opportunities available to Entegris, general business and market conditions and other factors. Additional information concerning these and other risk factors may be found in previous financial press releases issued by Entegris and Entegris' periodic public filings with the Securities and Exchange Commission, including discussions appearing under the headings "Risks Relating to our Business and Industry," "Manufacturing Risks," "International Risks," and "Risks Related to Owning Our Securities" in Item 1A of our Annual Report on Form 10–K for the fiscal year ended December 31, 2011, as well as other matters and important factors disclosed previously and from time to time in the filings of Entegris with the U.S. Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update publicly any forward-looking statements contained herein.

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended

September 29, 2012

October 1, 2011

June 30, 2012

Net sales

$184,449

$173,014

$188,233

Cost of sales

102,517

98,186

105,487

Gross profit

81,932

74,828

82,746

Selling, general and administrative expenses

39,095

33,533

35,989

Engineering, research and development expenses

13,314

11,957

12,726

Amortization of intangible assets

2,389

2,505

2,420

Operating income

27,134

26,833

31,611

Interest (income) expense, net

(40)

(38)

30

Other expense (income), net

1,481

315

(671)

Income before income taxes and equity in net income of affiliates

25,693

26,556

32,252

Income tax expense

7,656

4,582

10,579

Equity in net income of affiliates

--

(14)

--

Net income

$18,037

$21,988

$21,673

Basic net income per common share:

$0.13

$0.16

$0.16

Diluted net income per common share:

$0.13

$0.16

$0.16

Weighted average shares outstanding:

Basic

137,453

134,995

137,303

Diluted

138,499

136,305

138,196

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Nine months ended

September 29, 2012

October 1, 2011

Net sales

$548,085

$585,337

Cost of sales

307,163

327,021

Gross profit

240,922

258,316

Selling, general and administrative expenses

110,132

108,449

Engineering, research and development expenses

38,029

36,951

Amortization of intangible assets

7,259

7,763

Operating income

85,502

105,153

Interest (income) expense, net

(12)

650

Other expense (income), net

648

(1,643)

Income before income taxes and equity in net income of affiliates

84,866

106,146

Income tax expense

27,300

22,550

Equity in net income of affiliates

(3)

(489)

Net income

57,569

84,085

Net income attributable to noncontrolling interest

--

400

Net income attributable to Entegris, Inc.

$57,569

$83,685

Amounts attributable to Entegris, Inc.:

Basic net income per common share:

$0.42

$0.62

Diluted net income per common share:

$0.42

$0.62

Weighted average shares outstanding:

Basic

137,119

134,410

Diluted

138,247

135,954

Entegris, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

September 29, 2012

December 31, 2011

ASSETS

Cash, cash equivalents

$307,830

$273,593

Short-term investments

7,997

--

Accounts receivable, net

111,334

107,223

Inventories

102,817

93,937

Deferred tax assets, deferred tax charges and refundable income taxes

15,475

15,805

Other current assets and assets held for sale

14,054

12,441

Total current assets

559,507

502,999

Property, plant and equipment, net

151,245

130,554

Intangible assets

51,243

56,453

Deferred tax assets – non-current

26,300

25,119

Other assets

8,852

9,538

Total assets

$797,147

$724,663

LIABILITIES AND EQUITY

Accounts payable

$32,973

$30,609

Accrued liabilities

46,982

47,841

Income tax payable and deferred tax liabilities

11,669

14,144

Total current liabilities

91,624

92,594

Other liabilities

22,566

23,831

Shareholders' equity

682,957

608,238

Total liabilities and shareholders' equity

$797,147

$724,663

Entegris, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 29, 2012

October 1, 2011

September 29, 2012

October 1, 2011

Operating activities:

Net income

$18,037

$21,988

$57,569

$84,085

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

7,349

6,763

20,862

20,292

Amortization

2,389

2,505

7,259

7,763

Stock-based compensation expense

4,096

1,822

8,030

5,784

Other

(861)

(250)

515

(550)

Changes in operating assets and liabilities:

Trade accounts and notes receivable

6,045

25,811

(4,290)

15,684

Inventories

1,374

(1,815)

(9,623)

(4,204)

Accounts payable and accrued liabilities

784

(7,264)

1,528

(14,838)

Income taxes payable and refundable income taxes

(3,225)

(2,868)

(546)

(851)

Other

(2,673)

2,906

(4,483)

(395)

Net cash provided by operating activities

33,315

49,598

76,821

112,770

Investing activities:

Acquisition of property and equipment

(8,999)

(9,563)

(39,116)

(24,146)

Purchase of short-term investments

(7,996)

--

(7,996)

--

Other

1

95

(2,777)

(604)

Net cash used in investing activities

(16,994)

(9,468)

(49,889)

(24,750)

Financing activities:

Issuance of common stock

495

323

4,689

5,656

Other

509

72

909

(1,085)

Net cash provided by financing activities

1,004

395

5,598

4,571

Effect of exchange rate changes on cash

3,640

(2,933)

1,707

492

Increase in cash and cash equivalents

20,965

37,592

34,237

93,083

Cash and cash equivalents at beginning of period

286,865

189,445

273,593

133,954

Cash and cash equivalents at end of period

$307,830

$227,037

$307,830

$227,037

Entegris, Inc. and Subsidiaries

Segment Information

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

Net sales

September 29, 2012

October 1, 2011

June 30, 2012

September 29, 2012

October 1, 2011

Contamination Control Solutions

$112,876

$110,015

$123,144

$351,572

$378,896

Microenvironments

54,421

42,738

44,565

139,691

142,034

Specialty Materials

17,152

20,261

20,524

56,822

64,407

Total net sales

$184,449

$173,014

$188,233

$548,085

$585,337

Three Months Ended

Nine Months Ended

Segment profit

September 29, 2012

October 1, 2011

June 30, 2012

September 29, 2012

October 1, 2011

Contamination Control Solutions

$27,166

$29,522

$34,683

$93,917

$114,230

Microenvironments

16,771

6,790

8,523

30,823

23,758

Specialty Materials

2,112

4,675

4,404

11,184

13,915

Total segment profit

46,049

40,987

47,610

135,924

151,903

Amortization of intangibles

(2,389)

(2,505)

(2,420)

(7,259)

(7,763)

Unallocated expenses

(16,526)

(11,649)

(13,579)

(43,163)

(38,987)

Total operating income

$27,134

$26,833

$31,611

$85,502

$105,153

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Adjusted Operating Income and Adjusted EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 29, 2012

October 1, 2011

June 30, 2012

September 29, 2012

October 1, 2011

Net sales

$184,449

$173,014

$188,233

$548,085

$585,337

Net income attributable to Entegris, Inc.

$18,037

$21,988

$21,673

$57,569

$83,685

Adjustments to net income attributable to Entegris, Inc.

Net income attributable to noncontrolling interest

--

--

--

--

400

Equity in net income of affiliates

--

(14)

--

(3)

(489)

Income tax expense

7,656

4,582

10,579

27,300

22,550

Other expense (income), net

1,481

315

(671)

648

(1,643)

Interest (income) expense, net

(40)

(38)

30

(12)

650

GAAP – Operating income

27,134

26,833

31,611

85,502

105,153

Amortization of intangible assets

2,389

2,505

2,420

7,259

7,763

Miscellaneous corporate charge

3,928

--

--

3,928

--

Gain associated with pension curtailment

--

(726)

--

--

(726)

Adjusted operating income

33,451

28,612

34,031

96,689

112,190

Depreciation

7,349

6,763

7,026

20,862

20,292

Adjusted EBITDA

$40,800

$35,375

$41,057

$117,551

$132,482

Adjusted operating margin

18.1%

16.5%

18.1%

17.6%

19.2%

Adjusted EBITDA – as a % of net sales

22.1%

20.4%

21.8%

21.4%

22.6%

Entegris, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Earnings per Share

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 29, 2012

October 1, 2011

June 30, 2012

September 29, 2012

October 1, 2011

GAAP net income attributable to Entegris, Inc.

$18,037

$21,988

$21,673

$57,569

$83,685

Adjustments to net income attributable to Entegris, Inc.:

Amortization of intangible assets

2,389

2,505

2,420

7,259

7,763

Accelerated write-off of debt issuance costs

--

--

--

--

282

Miscellaneous corporate charge

3,928

--

--

3,928

--

Gain associated with pension curtailment

--

(726)

--

--

(726)

Gain associated with equity investments

--

--

(1,522)

(1,522)

(1,523)

Tax effect of adjustments to net income attributable to Entegris, Inc.

(2,301)

(457)

(616)

(3,802)

(2,492)

Non-GAAP net income attributable to Entegris, Inc.

$22,053

$23,310

$21,955

$63,432

$86,989

Diluted earnings per common share attributable to Entegris, Inc.:

$0.13

$0.16

$0.16

$0.42

$0.62

Effect of adjustments to net income attributable to Entegris, Inc.

$0.03

$0.01

$0.00

$0.04

$0.02

Diluted non-GAAP earnings per common share attributable to Entegris, Inc.:

Product Features:

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